The conflict between Tesla CEO Elon Musk and the social network Twitter is now showing signs of turning into a legal battle. The conflict erupted after Musk withdrew from $44 billion takeover deal.
Twitter has hired a leading US law firm to handle its upcoming lawsuit against Elon Musk, according to media reports. After that, a lawsuit against Musk could be filed in Delaware court of Chancery any day. Twitter has hired US law firms Watchtail, Lipton, Rosen and Katz LLP, according to Reuters.
Musk canceled his deal on Friday, saying Twitter had failed to provide information about the fake accounts on the platform. Musk, who has been working on a takeover deal for some time, said the deal could not be based on the number of fake users.
According to Twitter, the number of fake users is less than five percent, while Musk said the percentage of fake users on Twitter is close to 20 percent. Amid the controversy, Twitter threatened to sue after Musk withdrew from the $44 billion takeover deal. Twitter, meanwhile, has hired US law firms Watchtail, Lipton, Rosen and Katz LLP to handle its upcoming lawsuit against Musk.
Musk has repeatedly asked for information about fake and spam accounts on Twitter, but Twitter has not responded. In a letter to Twitter on Friday, July 8, filed with the US Securities and Exchange Commission (SEC), Musk said that he is terminating his $44bn bid to buy Twitter because they allege, that Twitter made “false and misleading” statements about its user data.
After Musk pulled out of his deal to buy Twitter for $44 billion on Friday, Twitter Board Chairman Bret Taylor said the company will sue Musk to enforce the merger contract and force him to complete “the transaction on the price and terms agreed upon.
In a tweet late Friday, Twitter board chair Bret Taylor said that Twitter will go to court to enforce the deal. “The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement,” Taylor wrote. “We are confident we will prevail in the Delaware Court of Chancery.”
Musk decided to buy Twitter on April 25 and then raised concerns about what percentage of Twitter’s monetizable daily active users (mDAU), a metric reported quarterly to the SEC, are non-human—whether bots, automated or spam accounts.
A global media for the latest news, entertainment, music fashion, and more.
